If you’re one of the many companies throughout Canada that relies on your employees to head out of the office and complete work for your business, the chances are good that you’ve spent time managing expense reports. However, one of the biggest issues with expense reporting lies in the reporting of taxes.
Managing the taxes of your home country is often difficult enough, but when you have to factor in taxes incurred in other countries like the UK, Australia, the US, and beyond, it becomes even more difficult to do. It’s incredibly vital, however, for multiple reasons that include:
- Ensuring accuracy in reviewing and repaying expenses to employees
- Maintaining compliance with all appropriate tax laws
- Ensuring all taxes are accurate for yourself and your employee
That second one is the most important, and a key reason that most people have moved to an automated expense reporting program for their company. Failure to remain compliant with taxes can lead to serious repercussions and has even led to the closure of some companies after fines and penalties were imposed upon them.
There are a couple of big hurdles you have to deal with when it comes to taxes on expense reports. They are:
- Completing the math associated with taxes and paying them properly
- Exchange rates between different countries that can influence the total amount you pay
- Understanding tax laws of another country and the way it relates to yours
These are just three examples of the numerous issues many employers have with expense reports and how they relate to taxes The easiest solution is to utilise modern expense reporting software. It will automate the process for you and eliminate the confusing, complicated task of dealing with tax rates. Once the basic information is entered into the system, the program takes over and does the hard work for you.
It’s important that you find a software program that will allow you to get the most from it. Look for one that not only handles basic expense reports, but that also allows for integration of credit cards, that works with mobile phones and tablet devices, and that offers other functionality as well. If you’ll keep these basic points in mind, you should be able to overcome the hurdles that taxes often bring to expense reporting, and get the kind of results that you deserve.